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Call rates unchanged from previous close; hovers above RBI’s repo rate

13 Mar 2012 Evaluate

Interbank call rates were at 8.75/8.80% little changed from Monday's close of 8.85/8.90% as banks continued to cover reserve needs at the start of a new reporting cycle ahead of payment of advance taxes by companies, which is expected to push up the overnight call rates, further.

Typically, banks prefer to meet their reserve requirement in the first of the two-week reporting cycle to avoid the volatility in rates in the second week and also with Reserve Bank mid-quarterly policy review around the corner, banks are mend to prefer a safer bet.

The banks via Liquidity Adjustment Facility (LAF) LAF borrowed Rs 131,400 crore through repo window, and parked Rs 1,505 crore on March 12, 2012 respectively.

The overnight borrowing rates has touched a high of 8.65% and a low of 6.50%, so far.

According to the Clearing Corporation of India (CCIL), the weighted average rate (WAR) in the call money market was 8.49% on Tuesday and total volume stood at Rs 11,902.82 crore, so far.

As per CCIL data, WAR in the CBLO (Collateralized Borrowing and Lending Obligation) market was 8.50% on Tuesday and total volume stood at Rs 27,044.85 crore, so far.

The indicative call rates which closed at 8.85/90% on Monday were contributions made from Andhra Bank, AXIS Bank, Bank of America, Bank of Baroda, Bank of India, Canara Bank, J P Morgan Chase, Citibank N.A., Corporation Bank, Credit Agricole Bank, Indusind Bank, ICICI Bank, ICICI Securities, IDBI Bank, Jammu and Kashmir Bank, Punjab National Bank, RBS, Societe Generale, Standard Chartered Bank, State Bank of India, Union Bank of India, ING Vysya Bank, BNP Paribas, HDFC Bank, P&S Bank.

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